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Pampa Energia SA (NYSE:PAM)
Beneish M-Score
-3.50 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Pampa Energia SA has a M-score of -3.50 suggests that the company is not a manipulator.

PAM' s 10-Year Beneish M-Score Range
Min: -6.61   Max: 2.82
Current: -3.5

-6.61
2.82

During the past 11 years, the highest Beneish M-Score of Pampa Energia SA was 2.82. The lowest was -6.61. And the median was -2.91.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Pampa Energia SA for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9231+0.528 * -0.3401+0.404 * 1.1448+0.892 * 1.2045+0.115 * 1.0957
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1938+4.679 * -0.1069-0.327 * 0.8685
=-3.50

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $252.3 Mil.
Revenue was 194.274057143 + 189.941714286 + 185.2912 + 170.28 = $739.8 Mil.
Gross Profit was 14.0118857143 + 2.01954285714 + 5.50182857143 + -0.458514285714 = $21.1 Mil.
Total Current Assets was $649.1 Mil.
Total Assets was $2,230.6 Mil.
Property, Plant and Equipment(Net PPE) was $1,141.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $56.9 Mil.
Selling, General & Admin. Expense(SGA) was $180.9 Mil.
Total Current Liabilities was $780.6 Mil.
Long-Term Debt was $477.5 Mil.
Net Income was 103.0792 + 83.1973714286 + 10.9253714286 + 35.3932571429 = $232.6 Mil.
Non Operating Income was 61.9629714286 + 16.5224 + 49.3179428571 + 10.9314285714 = $138.7 Mil.
Cash Flow from Operations was 90.5225142857 + 73.7980571429 + 114.472 + 53.5498285714 = $332.3 Mil.
Accounts Receivable was $226.9 Mil.
Revenue was 163.589371429 + 157.287314286 + 163.161714286 + 130.156114286 = $614.2 Mil.
Gross Profit was 12.9084571429 + -7.20422857143 + -2.79965714286 + -8.85485714286 = $-6.0 Mil.
Total Current Assets was $435.6 Mil.
Total Assets was $1,506.6 Mil.
Property, Plant and Equipment(Net PPE) was $811.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $44.6 Mil.
Selling, General & Admin. Expense(SGA) was $125.8 Mil.
Total Current Liabilities was $616.3 Mil.
Long-Term Debt was $362.1 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(252.273371429 / 739.786971429) / (226.895885714 / 614.194514286)
=0.34100813 / 0.36942024
=0.9231

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(2.01954285714 / 614.194514286) / (14.0118857143 / 739.786971429)
=-0.00968795 / 0.02848758
=-0.3401

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (649.107428571 + 1141.02468571) / 2230.5648) / (1 - (435.568457143 + 811.195428571) / 1506.63714286)
=0.19745344 / 0.17248563
=1.1448

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=739.786971429 / 614.194514286
=1.2045

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(44.56 / (44.56 + 811.195428571)) / (56.9304 / (56.9304 + 1141.02468571))
=0.05207095 / 0.04752298
=1.0957

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(180.893942857 / 739.786971429) / (125.798285714 / 614.194514286)
=0.24452167 / 0.20481832
=1.1938

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((477.474057143 + 780.5568) / 2230.5648) / ((362.082971429 + 616.289028571) / 1506.63714286)
=0.56399655 / 0.64937467
=0.8685

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(232.5952 - 138.734742857 - 332.3424) / 2230.5648
=-0.1069

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Pampa Energia SA has a M-score of -3.50 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Pampa Energia SA Annual Data

Jun05Jun06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.49210.75131.06371.24321.05231.54141.1018
GMI 1.0931.0541.21921.50822.3609-1.0086-1.7772
AQI 1.08390.77041.04442.05530.78030.59691.1507
SGI 2.71351.01981.1891.19571.15050.79681.163
DEPI 0.50331.08850.91450.89781.06331.1361.0677
SGAI 0.88341.14781.06071.031.00281.63641.197
LVGI 1.11490.93571.09661.15431.15641.25151.0047
TATA -0.0633-0.0942-0.0594-0.1359-0.1441-0.0662-0.1315
M-score -1.71-3.19-2.45-2.09-2.39-3.87-4.29

Pampa Energia SA Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.05510.77491.27441.14681.53731.69771.6971.38951.10180.9231
GMI 2.465412.8615-6.2017-2.2308-0.9659-0.8434-3.8032-1.8027-1.7855-0.3401
AQI 0.78030.90210.68180.76010.59690.57160.86880.79621.15071.1448
SGI 1.14741.12410.9530.8480.7990.80920.9561.071.1631.2045
DEPI 1.52480.91770.81750.78460.79221.02151.10341.13421.06771.0957
SGAI 1.02211.03141.29981.44331.60151.55361.27551.19861.17571.1938
LVGI 1.15641.14771.15581.2291.25151.28791.18741.14411.00470.8685
TATA -0.1208-0.1636-0.0616-0.0827-0.067-0.0626-0.131-0.1678-0.1327-0.1069
M-score -2.172.82-6.61-4.85-3.89-3.63-5.18-4.47-4.30-3.50
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